Page:Federal Reporter, 1st Series, Volume 2.djvu/905

 898 FXDEBAL KBPOBTSR. �that having disclosed the fact that he was a stockholder, upon which the law created a contingent liability, to the creditors of the bank, in case an assessment should be made upon the stockholders to meet the liability of the bank, his said liabil- ity as Bueh stockholder cornes within the operation of the composition, and plaintiff can only recover the amount paid other creditors by the terms of the composition. �I do not concur in the position taken by the defendant. The law under which this composition was obtained provides that "the provisions of a composition accepted by such reso- lution, in pursuance of this section, shall be binding on aU the creditors whose names and addresses, and the amounts of the debts due to whom, are shown in the statement of the debtor produced at the meeting at which the resolution shall have been passed, but shall not affect or prejudice the righta of any other crediter. " �The proceeding to obtain a discharge must be strictly con- strued. The bankrupt must substantially comply with ail the conditions requisite and precedent to obtain his dis- charge. �At the time this creditors' meeting was held, and this com- position eonsidered and approved by the creditors and court, this liability as a stockholder was only contingent, — no as- sessment had been made, in fact no receiver had been ap- pointed. Admitting, for the purpose of this decision, that a contingent liability can be discharged by composition pro- ceedings, there can be no doubt that, in order to secure this resuit, the bankrupt must include such contingent liability in his statement of debts; that the creditors holding such con- tingent indebtedness must have notice that a discharge from such liability is sought. But here there is no reference to this liability in the schedule of debts. No notice was given in any form that the bankrupt desired a discharge from this liability. Indeed, it is difficult to see how this could have been done at the time this composition was obtained, as no receiver had been appointed at the time, and no one could tell what rate of assessment upon the stockholders would be made. ����